Bigger Government Means More Corruption

I’ve posted more than 3,500 items since I started International Liberty. And if you look at the earliest posts, way back in April of 2009, you’ll find that one of the very first of them made the link between big government and big corruption.

My premise was very simple. When government is very large, with all sorts of power to provide unearned wealth via taxes, spending, and regulation, then you will get more sleaze.

A story in Fortune reports that government corruption at the state level is very costly.

…corruption is everywhere, in one form or another. And it’s costing U.S. citizens big time. A new study from researchers at the University of Hong Kong and Indiana University estimates that corruption on the state level is costing Americans in the 10 most corrupt states an average of $1,308 per year… The researchers studied more than 25,000 convictions of public officials for violation of federal corruption laws between 1976 and 2008 as well as patterns in state spending to develop a corruption index that estimates the most and least corrupt states in the union.

Here’s the list of the 10-most corrupt states. At first glance, there doesn’t seem to be a pattern.

Southern states are over-represented, it appears, but that’s obviously not an overwhelming factor since Georgia, South Carolina, Arkansas, and Texas (among others) didn’t make the list.

But it turns out that there is a factor that seems to be very prevalent among corrupt states.

The researchers also found that for 9 out of the 10 of the most corrupt states, overall state spending was higher than in less corrupt states (South Dakota was the only exception).

The authors suggest an attack on corruption could lead to a lower burden of government spending.

Attacking corruption, the researchers argue, could be a good way to bring down state spending.

I don’t disagree, but I wonder whether there’s an even more obvious lesson. Maybe the primary causality goes the other direction. Perhaps the goal should be to lower state spending as a way of reducing corruption.

Returning to the analogy I used earlier, a smaller dumpster presumably means fewer rats and roaches.

That’s not the only interesting data from the study. Fortune also reports that infrastructure projects and bloated bureaucracies are linked to corruption.

The paper explains that construction spending, especially on big infrastructure projects, is particularly susceptible to corruption… Corrupt states also tend to, for obvious reasons, simply have more and better paid public servants, including police and correctional officers.

For more info on the size of government and corruption, here’s a video I narrated for the Center for Freedom and Prosperity. It’s several years old, but the message is even more relevant today since the public sector is larger and more intrusive.

P.P.S. Switching to a different topic (though it also fits under corruption), we have another member for our potential Bureaucrat Hall of Fame. Or maybe this person belongs in a politician-ripping-off-the-system Hall of Fame.

Ireland’s outgoing European Commissioner, Maire Geoghegan-Quinn, is entitled to a total €432,000 EU pay-off over the next three years to help her adjust to life after Brussels. …EU commissioners leaving office are entitled, subject to certain conditions, to a “transitional allowance” over three years varying between 45pc and 65pc of salary. Mrs Geoghegan-Quinn’s entitlement amounts to 55pc of her salary, or €137,000 per year.

Huh?!? A transitional allowance? For what? That’s more than $500,000 in American money.

Is it really that difficult to end one’s term as an overpaid European Union Commissioner?

But what really makes Ms. Geoghegan-Quinn an inspiration to other bureaucrats (and a nightmare for taxpayers) is that she’ll also have her snout buried deeply in Ireland’s public trough.

And from this autumn, she can also resume collecting her Irish TD and ministerial pensions totalling €108,000 a year – giving her total pension entitlements worth over €3,000 a week.

It’s really not fair, is it? If only there were absolutely no government at all, wonderfully benign corporations like Pfizer, Goldman Sachs and Raytheon could just tiptoe through the flower-bedecked meadows of early 21st century capitalism, covering us all with the rose-petals of universal wealth. There’d be no pollution, no low pay, no corruption and a man (women would all be at home, raising the children) could genuinely earn whatever his hard work brought him….

Except, that’s all bullshit, isn’t it? You really, really need to grow up in the US and stop repeating this retarded Randist diarrhoea as if it had any basis in reality…

Mr. Dan has it right. The causal link between corruption and size is from size to corruption. The only reason 10 of the 15 richest counties in the U.S. surround The Capitol is that there is a lot of money in the government business. Companies do not spend money with lawyer lobbyists because they like lawyers; they do it because it provides a good ROI. If we reduced the size and complexity of government (regulations and tax code included) and shrank the amount of money the feds had to play with, the number of cronies in The Capitol would shrink considerably.

I note that there are no New England states on your list. That comes from the glaring problem with the analysis. It is based on convictions for corruption.

In Massachusetts, we are enlightened enough to recognize that self-dealing is inherent in the political process, so corruption is rarely prosecuted.

In Rhode Island, I understand that one of the candidates running for major of Providence is going for a third term. In each of his previous terms, he was convicted of corruption. He must have done something horrible each time, but I’m sure he’s learned his lesson.

[…] Bigger Government Means More Corruption July 1st, 2014 — “I’ve posted more than 3,500 items since I started International Liberty. And if you look at the earliest posts, way back in April of 2009, you’ll find that one of the very first of them made the link between big government and big corruption. My premise was very simple. When government is very large, with […]” 3 Comments […]

government is inherently corrupt, it is a criminal enterprise having as its the sole purpose the stealing of money and assets from private citizens, violence and murder of private citizens and members of other government criminal enterprises (governments of other countries) for the benefit of the participants in the criminal enterprise – politicians, bureaucrats and the power elite who benefit from the enterprise and pay off the managers and employees of the criminal enterprise